Riyadh will seek foreign policy balance for now

Significance

Riyadh has prioritised the pursuit of regional de-escalation, largely to boost its economic prospects as the kingdom pursues foreign investments to support diversification away from oil. A history of mutual mistrust and Saudi interest in formalising a US defence pact is prohibiting deeper or more transformative Saudi-Iranian ties.

Impacts

• Yemen's Iran-backed Huthis will refrain from attacking Saudi assets.
• Saudi Arabia will postpone efforts to normalise relations with Israel until a ceasefire in Gaza is in place.
• Saudi Arabia could mediate more prisoner exchange deals between Russia and Ukraine.